Spire bank has reduced its insurance premium financing rate to 8 percent down from 14.5 percent.
The Bank has partnered with Fidelity Insurance and Invesco Assurance to provide the flexible and cheaper insurance premium financing solution to its customers.
Under the arrangement dubbed ‘The Scheme’ Spire bank will provide its individual, SME and corporate customers with flexible repayment options on all annually insurable risks such as motor vehicles, domestic packages, property insurance among others.
The bank has broken ranks with its peers who currently charge a market rate of 14.5 percent for insurance premium financing. Spire bank customers are expected to enjoy rates as low as 3.02 per cent flat rate for 10 months.
Spire bank, Managing Director, Tim Gitonga said the product has no hidden charges and customers will be able to access insurance cover immediately while paying their premiums in easy and less burdensome installments.
“The scheme offers our customers the lowest insurance premium financing rates in the market. It has simplified application documentation and is open to premiums as low as 25,000 shillings with no maximum limit,” said Gitonga.
Gitonga said the scheme was part of the bank’s strategy is to grow its banking business through the provision of a differentiated suite of retail, SME and corporate banking products and services to meet the ever changing needs of its customers.
“The bank’s anticipates its growth will be driven through adopting innovative products and services and by removing barriers to entry,” said Gitonga.
Kenya’s insurance penetration stands at 3.0 percent compared to Africa’s insurance penetration rate average of 3.5 percent.
Growth of the middle class is driving up demand for insurance products and services especially in motor insurance, due to the high rate of car importation into the country.
Unlike banking where financial inclusion is at 75 percent in Kenya, insurance penetration is only at 3 percent.
“The changes that we are implementing at Spire bank are aimed at improving customer interaction, reducing operational cost and developing new business opportunities,” said Gitonga.